Shifting US policy leaves Asian allies at sea – Nikkei Asian Review

SINGAPORE — China has long bristled at the U.S. Navy’s “freedom of navigation operations” in the South China Sea, which challenge Beijing’s territorial claims in the disputed waters. So when Zhao Xiaozhuo, a senior colonel in the Chinese army, found himself with a chance to complain about them directly to U.S. Secretary of Defense James Mattis recently, he took it. The U.S. operations are a “violation of the law of the People’s Republic of China, of territorial waters,” Zhao told Mattis during a conference in Singapore on June 2. Mattis defended the naval operations by citing a 2016 international tribunal decision that dismissed China’s expansive “nine-dash line” claim to much of the sea.

Space: The next frontier for US-China rivalry – Nikkei Asian Review

SINGAPORE — With the U.S. government pledging to resume manned missions to the Moon, and eventually send a mission to Mars, Cold War-style competition over space exploration is re-emerging — between China and the U.S. this time. China hopes to make its first manned lunar landing within 15 years, around six decades after the last American walked on the moon in 1972. But China is not as far behind as those dates suggest. It hopes to make the first-ever landing on the dark side of the Moon by the end of 2018. This feat eluded the U.S. and Soviet Union during the heyday of their Space Race from the late 1950s to the mid-1970s. Other Asian counties, notably Japan and India, have their own space programs. But China appears to be leading the way.

Southeast Asian nations watch U.S. – China trade spat warily – Los Angeles Times

SINGAPORE — If China and the United States continue their charge into a full-on trade war, few regions will be as vulnerable to the resulting economic turbulence as Southeast Asia. That’s why the 10 governments of the Assn. of Southeast Asian Nations meeting in Singapore this week are hashing out ideas about how the region can duck any shrapnel if the world’s two biggest economies keep firing protectionist salvos at each other. “Considering that China and the U.S. are ASEAN’s first and third trading partner respectively, the early exchange of blows between Washington and Beijing would be watched nervously across all ASEAN capitals,” said Tang Siew Mun, head of the ASEAN Studies Centre at the ISEAS-Yusof Ishak Institute, a Singapore-based research organization.

Australia seeks new ASEAN ties as US-China rivalry grows – Nikkei Asian Review

JAKARTA — While there is no clear threat from the U.S. to loosen its long-standing ties with Australia, some observers say the country may one day face a choice between its main security ally and its biggest trade partner. Graham Allison, author of Destined for War: Can America and China Escape Thucydides’s Trap?, said that China’s rise is forcing Asian countries with close ties to the U.S. to reconsider. “Largesse, economic imperialism — call it what you will: The fact is that China’s economic network is spreading across the globe, altering the international balance of power in a way that causes even longtime U.S. allies in Asia to tilt from the U.S. toward China,” Allison said.

Australia to bolster Southeast Asian ties with East Timor boundary treaty – Nikkei Asian Review

SINGAPORE — After a saga lasting nearly two decades, Australia will on March 6 sign a boundary treaty with East Timor that will allow the Southeast Asian country to earn much-needed revenue from gas fields under the Timor Sea. “The Parties have reached agreement on a treaty which delimits the maritime boundary between them in the Timor Sea,” read an announcement made by the Permanent Court of Arbitration on February 25 after negotiations in Kuala Lumpur. “This marks a new chapter in our relationship with Timor-Leste, bringing us together as neighbours sharing a boundary, and as partners and friend,” said Australian foreign minister Julie Bishop in a March 4 press statement. Australia’s decision should strengthen ties with Southeast Asian countries as it finds itself torn between the interests of the U.S. and China. “Undoubtedly it will help in that way,” said John Blaxland, director of the Southeast Asia Institute at The Australian National University. Australia’s previous reluctance to establish a maritime boundary with the East Timorese prompted criticism from Dili and from campaign groups in Australia. “This treaty will hopefully go someway to restoring its reputation which definitely took a hit due to its bullying of East Timor” said Tom Clarke, spokesman for the Timor Sea Justice Campaign.

Indonesia joins China and South Korea on US trade hit list – Nikkei Asian Review

JAKARTA — Indonesia is the latest Asian country to face American trade curbs after the U.S. Department of Commerce said it planned to slap anti-dumping duties of 92.52% to 276.65% on biodiesel imports from the archipelago. Argentina, another biodiesel producer, was also targeted by the Feb. 21 announcement, after U.S. businesses complained that they were being undercut by unfairly subsidized fuel from both countries. The commerce department said that exporters from Argentina and Indonesia respectively sold biodiesel in the U.S. at 60.44% to 86.41% and 92.52% to 276.65% below what it deems fair value. The U.S. International Trade Commission will make a final decision on April 6 on whether the imports have hurt U.S. producers. If the ruling is upheld, the duties recommended by the commerce department will effectively price Indonesian biodiesel out of the U.S. market. 

Trump messages Asia in first union speech, demands “reciprocal” trade – Nikkei Asian Review

JAKARTA — A week after announcing tariffs on washing machine and solar panel imports, U.S. President Donald Trump claimed that “the era of [U.S.] economic surrender is totally over” during his maiden state of the union address. But the speech did not go into detail on trade with Asia or about the Trans Pacific Partnership, an American-led Asia-Pacific free trade deal that Trump withdrew from one year ago. During his hour and half address, which came Wednesday in Asia, Trump briefly recycled some of his previous trade rhetoric, saying he expects it to be “fair” and “reciprocal.” Pledging to “fix bad trade deals,” Trump promised to “protect American workers and American intellectual property, through strong enforcement of our trade rules.” Trump lauded Japanese carmakers Toyota and Mazda for announcing new production plants in the U.S. He also suggested that his recently announced tax cuts could spur inward investment

Trump hails great relationship with Philippine counterpart – The Daily Telegraph/RTÉ Morning Ireland/Los Angeles Times

MANILA — President Donald Trump said on Monday he had a “great relationship” with his Philippine counterpart, Rodrigo Duterte on Monday, amid contradictory messages from the administration of each country over whether human rights were discussed. The two presidents bonded during their much anticipated first formal meeting on Monday, held on the sidelines of an Asia-Pacific summit in Manila. The two presidents shared a joke at the media’s expense, with Mr Trump laughing as Mr Duterte joked that the press are “spies.”  According to Harry Roque, a Philippines government spokesman, the two presidents bonded over another shared dislike, former US President Barack Obama, who Mr Duterte dismissed as “a son of a whore” due to Mr Obama’s criticism of the violent anti-drugs campaign launched by Mr Duterte in 2016. 

Philippine president lauds China ahead of meeting with Trump – The Daily Telegraph/Los Angeles Times/France24

MANILA  — Around two hours before meeting U.S. President Donald Trump at a dinner held for Asia Pacific leaders on the eve of regional summit, Philippine President Rodrigo Duterte cast further doubt on American economic leadership by describing China, which has the the world’s second biggest GDP, as the global economic leader. “Today China is the number one economic power, and we have to be friends,” Duterte said, speaking at a business forum held at a huge Manila casino. President Trump arrived in Manila on Sunday, the last leg of a five country Asia tour that has seen him feted by the leaders of Japan and China but at odds with much of the region over the direction of trade policy. China and Japan are promoting multilateral deals, including the Trans Pacific Partnership, which does not involve China but is being led by Japan. The TPP was one of Obama administration’s main foreign policy efforts but was ditched by Trump soon after he took office.

Pence softens Trump’s trade talk during Indonesia visit – Nikkei Asian Review

JAKARTA — During a visit to Jakarta on April 21, U.S. Vice President Mike Pence diluted some of the anti-trade rhetoric espoused by his recently-elected boss, President Donald Trump, saying that his country and Indonesia “can and will do more to expand commerce.” “We seek trade with Indonesia that is free and fair,” Pence said, adding that “we seek to create a win-win trading relationship for both of our nations and all of our people.” His comments mark a change in tone from the zero-sum views on trade coming from the White House under President Trump, rhetoric that prompted Washington to compile a list of 16 countries — including Indonesia — that have trade deficits with the U.S. Pence, who was on the second day of a visit to Indonesia after stopovers in South Korea and Japan and before heading on to Australia, announced that American companies, including ExxonMobil, General Electric and Lockheed Martin, would sign “11 major deals worth more than $10 billion” in Indonesia.